|Bid||0.00 x 1400|
|Ask||0.00 x 800|
|Day's Range||18.92 - 20.25|
|52 Week Range||17.55 - 105.73|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||5.98|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Weight Watchers International stock shot up Friday after the company reported a slimmer first-quarter loss than Wall Street expected. Stock in the company, which has rebranded itself as WW (ticker: WW), has had a brutal time in 2019. CEO Mindy Grossman blamed people turning to high-fat, low-carbohydrate ketogenic diets as a way to lose weight, among other factors.
Despite declining top- and bottom-line results from the prior year, there are reasons for investors to remain optimistic for 2019.
Weight Watchers International, Inc. (NASDAQ: WW) surged more than 18 percent Friday after reporting a first-quarter bottom-line beat. Bank of America Merrill Lynch attributed the beat to favorable operating margins, which came in at 6 percent against estimates of 3.2 percent. Meanwhile, product sales fell 30 percent year over year — an issue Bank of America attributed to recruitment problems and KeyBanc attributed to poor studio attendance.
surged in premarket trading on Friday after the company posted a narrower first-quarter loss and boosted its outlook for the rest of the year. The stock has plunged more than 80% over the past 12 months from a 52-week high of $105.73.
Check out the companies making headlines after the bell:Shake Shake SHAK soared 8% in extended trading Thursday after reporting same-store sales that crushed expectations. The burger joint's same-store sales increase 3.
On a per-share basis, the New York-based company said it had a loss of 16 cents. The results surpassed Wall Street expectations. The average estimate of eight analysts surveyed by Zacks Investment Research ...
Weight Watchers swung to a loss of $10.7 million during the first quarter from a profit last year, but it wasn't as bad as analysts expected.
During the fourth quarter the Russell 2000 ETF (IWM) lagged the larger S&P 500 ETF (SPY) by nearly 7 percentage points as investors worried over the possible ramifications of rising interest rates. The hedge funds and institutional investors we track typically invest more in smaller-cap stocks than an average investor (i.e. only 298 S&P 500 […]
It would seem like Weight Watchers (NASDAQ:WTW) stock is cheap. After all, Weight Watchers stock has fallen by 80% just since July. Yet WTW stock (soon to be WW stock, as the company is changing its ticker) has deserved that steep decline.Source: Shutterstock WW's earnings are expected to plunge in 2019, based on the company's own guidance. Add in WW's heavily leveraged balance sheet, and the declines of WTW stock make some sense. * 7 Healthy Dividend Stocks to Buy for Extra Stability In fact, at this point, Weight Watchers stock actually is pricing in a turnaround. The company's volatile history suggests that might be too optimistic.InvestorPlace - Stock Market News, Stock Advice & Trading Tips The Weight Watchers Stock RollercoasterTrading in Weight Watchers stock over the past few years has been something close to incredible. WTW stock was at $80 in early 2012. It steadily collapsed over the next few years; by 2015, it had bottomed out below $4.Then Oprah Winfrey rode to the rescue, taking a stake in the company and becoming its spokesperson. Weight Watchers stock would bounce -and keep bouncing. At its 2018 peaks, Weight Watchers stock had gained over 2,600% from those 2015 lows .Starting last summer, WW then reversed yet again. Weight Watchers stock has now fallen some 81% in nine months. Clearly, WW is not for the faint of heart.The question looking back might be: Why is WTW stock so ridiculously volatile? And there are actually two answers to that question. Why WW Is So VolatileFirst, Weight Watchers has - and long has had - quite a bit of debt. It closed 2018 with about $1.5 billion of borrowings, net of its cash.That magnifies the effect of valuation changes on the price of Weight Watchers stock. At those July peaks, including net debt, WW was valued at about $8.5 billion. At the moment, the enterprise value of Weight Watchers stock is closer to $3 billion. That's a roughly 65% decline, but it's not as big as the share price decline would suggest.The other, larger issue is incremental margins. Each additional subscriber is hugely profitable for Weight Watchers. But the company also loses at great deal of profits when it loses subscribers, so its margins move wildly. Between 2013 and 2015, its adjusted operating margin fell from 26.5% to 16.3%. Revenue over those two years tumbled by $560 million, and its adjusted operating profit dropped by nearly half that.Essentially, Weight Watchers stock is doubly leveraged: first on the balance sheet, and then in the operating model. When the company adds subscribers, its operating profit rises sharply. Thanks to the debt, those increases lead to even larger increases in net profit. Those profits are amplified further by the increasing size of the equity value in comparison with the company's total valuation.In that context, the huge movements of WW stock make more sense. This is a stock that can soar when its subscriber growth looks positive and plunge when customers start fleeing. Both have happened over the past few years. Be Careful With Weight Watchers StockThe history of WW, and the nature of the model, highlight why it's risky to call a bottom of WTW stock. Subscribers are heading in the wrong direction, which is the key reason why Weight Watchers stock plunged after WW reported disappointing Q4 earnings in February. And the company's second-quarter subscriber numbers contributed to the first leg down last summer.On the Q4 conference call, CEO Mindy Grossman attributed the weakness in part to the increasing popularity of "keto" diets. But there may be more going here. Rival Nutrisystem, now owned by Tivity Health (NASDAQ:TVTY), has struggled in recent quarters. And Weight Watchers is embarking on a cost-cutting effort, which suggests management itself doesn't see a reversal on the way in the near-term.Fundamentally, too, WTW looks problematic. Its 2019 EPS guidance was close to stunning: the company projected EPS of just $1.25-$1.50 for the year. The consensus EPS outlook heading into the report, at $3.53, was more than twice even the high end of the guidance range. And the guidance suggests that WW's earnings will drop by more than half in 2019.Yet Weight Watchers stock still trades at 14 times the midpoint of its guidance. That's a figure that suggests the company will grow going forward. To justify that valuation, Weight Watchers must start improving in 2020, and the company itself doesn't expect that to happen until the second half of this year at the earliest.The company's declining profits could also negatively impact its debt. WTW predicts that it will end 2019 with debt of roughly four times its EBITDAS (earnings before interest, taxes, depreciation, amortization, and stock-based compensation). As a JPMorgan Chase analyst pointed out, that could violate its debt covenants, forcing it to make a huge prepayment this year. On the Sidelines on Weight Watchers StockWhere WTW traded in 2018 really has little bearing on what it should, or will, trade at in 2019. Looking at the company right now, I think it does not have a shortage of risks. Its earnings are declining, its subscribers are falling, and its debt is worrisome. And Weight Watchers stock is a classic "falling knife." Yet WTW stock still is pricing in growth going forward.All isn't lost for WW. As history shows, WTW stock can quickly bounce back. But even the new, lower share price is baking in improvement. Given the risks posed by Weight Watchers stock, anyone who's bullish on the shares must believe that WW will improve soon.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 Dividend Stocks Perfect for Retirees * 7 Reasons the Stock Market Rally Isn't Over Yet * 10 S&P 500 Stocks to Weather the Earnings Storm Compare Brokers The post It Can Get Worse for Weight Watchers Stock appeared first on InvestorPlace.
The price fluctuation of the shares of WW International (formerly (WTW)) (WTW) shares over the past few years has been staggering. Figure 1 shows [To view this and other graphics mentioned in this article, please go to SumZero.com] a chart already familiar to RIM’s clients: It is easy to observe that the correlation of short-term EPS expectations and share price is substantial. As EPS expectations have suffered a severe correction recently, so did the share price.
In many respects, Weight Watchers (NYSE:WTW) and Herbalife (NYSE:HLF) could be said to be two peas in a pod. But with one planting the seeds to sprout future share growth on the price chart and the other looking ready for harvest, it's time for a well-timed pairs trade to capture a shrinking spread in WTW stock and shares of HLF.Source: Mike Mozart via FlickrWTW stock and Herbalife have a lot in common. Both are positioned to cash in on the global obsession with slimming down through a combination of products, programs and better food choices aimed at achieving a healthier you. But it can still be a tough sell.While both Weight Watchers and HLF have proven successful ventures over the years, maintaining consistent success at the customer level is more challenging for a myriad of reasons. From retaining the customers they're supposed to liberate, old habits dying hard in today's fast food, on-the-go way of life and relentless competition always hawking the newest genie in the bottle, there's going to be cyclical ups and downs for both names within this secular growth industry.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBearing that in mind, it now appears to be an opportune time to buy into an out-of-favor and slimmed down WTW stock and pair up the entry with a short in shares of Herbalife in order to capture a shrinking price spread. Diet Stock Pairs Trade Long: WTW StockWTW stock may as well have been called 'SlimFast' over the past several months. After enjoying a massive run of nearly 800% from 2017 into 2018's first half, Weight Watchers has quickly shed those gains with shares off more than 80% since last June. * 10 Dividend Growth Stocks You Can't Miss There are a ton of excuses for the dive in share price. Most recently, there was a below-the-market price target reduction from JPMorgan, which ironically enough kept its rating on Weight Watchers stock at underweight.But a larger reason for the massive shred in WTW has been the fact that fewer customers have been staying onboard and signing up for Weight Watchers. Growth has been slipping for three consecutive quarters, while subscribers peaked at 4.6 million in Q1 of 2018. Entering 2019, that number now stands at 3.9 million. Click to EnlargeThe good news is as bad as it sounds and looks today, it's not likely to be permanent.The better news? Who knows? Maybe Monday's relative price relief prompted by Morgan Stanley, which noted it sees subscriber growth making a comeback, is a sign a new and more positive cycle is beginning?With WTW stock having been through an extreme weight loss program in its own right and Wall Street still mostly pooh-poohing shares, it's time to buy Weight Watchers as one-half of a pairs trade when few others are willing to gobble it up. Diet Stock Pairs Trade Short: HLF StockMost investors that follow the market are aware of Bill Ackman's infamous Herbalife capitulation in early 2018. It turns out he saved his investors some money during the interim. But he may soon be kicking himself for the exit -- though maybe not for the same reasons behind the short position.By late February of this year, Herbalife has seemingly put much of its troubles behind it and its earnings confessional supports a company that continues to grow. But Herbalife may have set itself up as a short prone to crumbling under its own weight by merely meeting Street forecasts for its fourth quarter and issuing below-view guidance for 2019. * 7 Stocks to Buy for Spring Season Growth After HLF stock's massive rally, a larger downdraft in HLF stock makes sense, especially in a market known for its ability to wear out and fool the crowd. Click to EnlargeTechnically, my bearish thesis does appear to be in the beginning stages of playing out after shares hit all-time-highs back in early February. Following an uneventful earnings reaction highlighted in the weekly chart, HLF stock has broken below trendline support formed during a sloping triple top pattern.Now shares of Herbalife are signaling a continuation to the downside after a narrow break of a tight consolidation pattern formed the past couple weeks. And as the other half of a pairs trade looking to trim some fat from HLF stock and shrink the spread with WTW stock, Herbalife looks like a great short.Disclosure: Investment accounts under Christopher Tyler's management do not currently own positions in any securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional options-based strategies, related musings or to ask a question, you can find and follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Internet Stocks to Watch * 7 AI Stocks to Watch with Strong Long-Term Narratives * 10 Dow Jones Stocks Holding the Blue Chip Index Back Compare Brokers The post The Best Way to Play Diet Stocks for Profits Right Now appeared first on InvestorPlace.
Shares of Weight Watchers (NYSE:WTW) finally look to have found their footing after a nasty drop. Weight Watchers stock had fallen nearly 60% this year before rallying yesterday. Certainly some of the selling was warranted given the slowing subscriber growth and increased competition. Now, that selling has come too far, too fast. Time to play for a pop in Weight Watchers.Source: Shutterstock The impetus for the rally yesterday was an encouraging note out of Morgan Stanley. Analyst Vincent Sinisi looks for Weight Watchers to have roughly 4.5 million subscribers in Q1, which is in line with company guidance. Mr. Sinisi views this as a constructive sign. This is in contrast to an earlier second downgrade out of JP Morgan that had torpedoed WTW stock on April 10. WTW Stock ChartsWTW stock is now sporting a P/E under 6, which is by far the lowest valuation over the past 10 years. Other metrics, such as price/sales and price/cash flow, are also at historically cheap levels. Weight Watchers stock is looking comparatively much more attractive at these multiples.InvestorPlace - Stock Market News, Stock Advice & Trading TipsShares are also looking a lot more compelling from a technical perspective. The 9-day RSI reached oversold levels before strengthening. Bollinger Band Percent B turned negative before heading higher. More importantly, WTW stock finally had a solid up day yesterday after four straight days of lower closes. This often signals that the sellers may have finally become exhausted, especially after such a punishing drop.Implied volatility (IV) is also near the recent highs, trading at the 88th percentile. This usually is a bullish indication that the downside fear has gotten a little overdone. It also means that option prices are comparatively expensive. There has also been a big repeat buyer in the May 20 calls over the past three trading days, with over 20,000 contracts trading versus only 648 open interest before the buying began. * 7 Stocks That Can Outperform for Years Stock traders should look to buy an oversold and underloved WTW stock near current levels. Selling May $20 calls against the position would lower the risk in front of earnings while still leaving upside open.Option traders may want to take advantage of high option prices and sell the May $17.50/$15 put spread for 70 cents credit. Maximum gain is $70 per spread with maximum risk of $180. Return on risk is 38.88%.The short $17.50 strike price provides a 6.2% downside cushion to the $18.66 closing price of WTW stock.Earnings are expected May 2 with consensus of a loss of 27 cents per share.Tim Biggam may hold some of the aforementioned securities in one or more of his newsletters. Anyone interested in finding out more about Tim and his option-based strategies can go to https://marketfy.com/item/options-and-volatility. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Internet Stocks to Watch * 7 AI Stocks to Watch with Strong Long-Term Narratives * 10 Dow Jones Stocks Holding the Blue Chip Index Back Compare Brokers The post Time to Nibble on Weight Watchers Stock appeared first on InvestorPlace.
From an analyst note to earnings and acquisition news, these three stocks climbed despite a down day for the broader markets.
were rising nearly 9% Monday after analysts at Morgan Stanley published a bullish note on expectations the company's falling subscription growth will stabilize in its fiscal first quarter. "In February, management stated that subscriber growth was sequentially improving from the start of the year, though still trending negative. According to Morgan Stanley's channel checks, Weight Watchers is in line to have 4.5 million subscribers in the first quarter, down 2.5% year over year but in-line with guidance.
Investors need to pay close attention to Weight Watchers (WTW) stock based on the movements in the options market lately.
The stock of meal-kit maker Blue Apron (NYSE:APRN) went public in mid-2017 at an IPO price of $10. Right from the onset, investors sniffed out that this company had competition and profitability problems.Source: Shutterstock The stock consequently never traded above its IPO price. Ever since, disappointing quarter after disappointing quarter has confirmed those early fears, and APRN stock now trades hands just above $1, with the threat of bankruptcy lingering around the corner. * 7 AI Stocks to Watch with Strong Long-Term Narratives A number of events in early 2019 gave investors hope that APRN stock was in the beginning stages of a massive turnaround. Specifically, Blue Apron announced a big meal-kit partnership with Weight Watchers (NYSE:WTW), gave a positive update on its fourth-quarter trends, and reaffirmed its guidance for positive EBITDA in fiscal 2019. APRN stock consequently tripled over the course of a month.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThat turnaround rally was ultimately stymied by bigger picture and longer-term concerns related to revenue stability and profitability.The "false turnaround" of APRN stock in early 2019 shows that Blue Apron stock won't meaningfully rebound until APRN's fundamentals start to materially improve. That means investors should not buy APRN stock until they see customer stabilization, alongside revenue stabilization. They will also need to see APRN's gross margins expand to and hold the 40% level, and the company's operating losses must narrow significantly.If all of those conditions are met, APRN stock could rally towards $1.50 or higher in 2019. What Blue Apron Needs for a TurnaroundOver the past several quarters and years, as the meal-kit space has become more crowded than ever before, APRN has lost customers, its revenues have dropped, its margins have been adversely impacted, and its narrow losses have turned into wide losses.There's reason to believe these trends will continue. Its competition is only ramping. Plus, the meal-kit space is turning out to be a lot smaller than most had anticipated, so Blue Apron is presumably losing share in a market that may already be tapped out.APRN can't really afford to cut its operating spending by very much, since doing so in the past has caused its customer base to decline by large amounts. Consequently, the reality is that Blue Apron is stuck between a rock and a hard place, so Blue Apron stock probably won't stage a big turnaround anytime soon.But there's a chance that APRN will pull a rabbit out of its hat.For starters, APRN has a new CEO, Linda Findley Kozlowski, who knows a thing or two about turnarounds. Before coming to APRN, she was the COO of Etsy (NASDAQ:ETSY). When she became COO in May 2016, ETSY stock was in the midst of a downward spiral from $30 to $8. By the time she left in late 2018, ETSY stock had skyrocketed to $50. The combination of Kozlowski's arrival and the big deal with WTW could be exactly what the company needs to stabilize its customer base without increasing its marketing spending.Furthermore, the company has a new fulfillment center that is fully operational and has significantly higher margins than the company's older fulfillment center. Thus,in 2019, its gross margins could rise towards 40% and could potentially exceed 40%. Along with that margin improvement, revenue stabilization, stable marketing spending and lower general and administrative expenses would lead to healthy operating-spending leverage.All in all, there is an opportunity for APRN to stabilize its customer and revenue base in 2019, while concurrently improving its gross margins and driving down its operating-spending rate. If the company does check off all those boxes, APRN stock will rally tremendously. APRN Stock Has Room to RunAPRN stock is so beaten up today that if the company meets the criteria I set above, Blue Apron stock can jump 50% this year.The math is pretty easy to understand. Blue Apron's customer base has been consistently dropping for several quarters. But, given the WTW deal and its new CEO, it's reasonable to assume that its customer base will not drop much below 500,000 Those customers will develop some sense of loyalty to Blue Apron, so it will be able to continue to spend less on marketing. Meanwhile, its gross margins should continue to improve, thanks to its new fulfillment center.If all that happens over the next several years, I think APRN could squeeze out a narrow profit by fiscal 2023, and will generate earnings per share of about 15 cents by fiscal 2025. Based on a forward price-earnings multiple of 16, which is average for the market, that implies a fiscal 2024 price target for APRN stock of $2.40. Discounted back by 10% per year, that equates to a fiscal 2019 price target of $1.50 for Blue Apron stock.Thus, in the event that Blue Apron does turn itself around, APRN stock can jump 50% in 2019. The Bottom Line on APRN StockThe chances of Blue Apron carrying out a big turnaround in 2019 are low. But APRN could rise tremendously if APRN does turn itself around.So the only way to look at APRN today is as a high-risk, high-reward trade. Only investors with a big appetite for risk should be dabbling in those waters.As of this writing, Luke Lango did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * FAANNG Stocks, Ranked From Cheapest to Most Expensive * 7 Stocks With a Lot on the Line This Earnings Season * 7 Marijuana Companies: Which Pot Stocks Should You Buy? Compare Brokers The post Can Blue Apron Stock Rally in 2019? appeared first on InvestorPlace.